Consider a simplified version of endogenous growth model discussed in the class. The growth rate is determined by: a² Region 1: For 0 ≤ 0 ≤ (1 − n), It = H (0), Region 2 and 3: For(1-n) ≤0 ≤ 1, Note that s(R) where H(0)aH_ns(B) -√² B 1- BaH a It = ats(B) ac {0103-107 n + a² Assume the following parameter values: s(B) OaH al 1- |
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- Financial development, social capital, favourable business regulation, tradeopenness are different aspects of ‘social capability’ influencing innovationprocesses and, therefore, economic development. Make a ranking of these factorsaccording to their observed degree of importance for economic developmentThe following formula describes the particular case of the endogenous growth pattern of Uzawa-Lucas. Show that the growth rate of y in BGP is determined by sA. Y = A (hL)'-«Kª, Y y = ; À = 0, L = 0, h = sy, K = sY. L' %3DFinancial development, social capital, favourable business regulation, tradeopenness are different aspects of ‘social capability’ influencing innovationprocesses and, therefore, economic development. Make a ranking of these factorsaccording to their observed degree of importance for economic development (3points). Explain why ‘inclusiveness’ and ‘equality in opportunities’ canstrengthen the innovation capability of an economy
- Question 8 According to a NIESR (2022) report “.the UK has one of the poorest productivity performances and highest spatial inequalities among the OECD's 38 advanced economies and this has been made worse by Covid-19. If policymakers return to the same economic structures post-pandemic that failed to resolve the productivity problem pre-pandemic, then the UK is set for another decade of a low-growth, low productivity and low-wage economy." Analyse this statement in light of the UK's actual productivity performance in recent years and the channels through which the pandemic is affecting productivity. Provide some advice on the policies that the government could consider implementing to support productivity growth.In our one country model of technology growth, y = A(1- γA). Suppose that the country temporarily raises its level of γA. (a) Draw two graphs, one for y and one for A, showing how the time paths of output per worker (y) and productivity (A) will compare under this scenario with what would have happened if there had been no change in γA Please do fast ASAP fastSweden and Norway are two neighboring countries in Northern Europe with similar savings rates, population growth rates, technology growth rates, and depreciation rates. However, Norway differs from Sweden in that Norway has large deposits of oil all along its coast, which makes it very easy for Norway to produce large quantities of crude oil every year with relatively little capital and labor. a) Draw a Solow Growth diagram that compares Sweden and Norway. What is the main difference between the two countries in the diagram? b) According to the Solow Growth Model, which country would have a higher standard of living in the long run? Which country would have a higher growth rate of its standard of living in the long run? c) Suppose now that, in the long run, oil becomes obsolete and has no value because it is uneconomical relative to renewable energy sources like solar and wind power. What would this do to your Solow Growth diagram in part a? How would the standard of living in Norway…
- In our one country model of technology growth, y = A(1- yA). Suppose that the country temporarily raises its level of yA. (a) Draw two graphs, one for y and one for A, showing how the time paths of output per worker (y) and productivity (A) will compare under this scenario with what would have happened if there had been no change in yA.e ncia.wwnorton.com b. Per capita real GDP doubled in South Korea again in only seven years, reaching $1600.00 by 1988.00. What was the average annual economic growth rate between 1981 and 1988.00? (NOTE: Round this to two places past the decimal point.) % 4th attempt 3rd attempt Okay Elizabeth 4 8 Q W E Y U P @ 23 & return A F G H J K % ! V N M .?123 .?123Assume the rate of technological progress is constant in a SSGM with Cobb- Douglas production function. Show that a steady-state cannot be identifiede if the technological progress is capital augmented, i.e. F(K, L) = [A(t)K(t)]*L(t)'_ª, where A(t) is the efficiency term growinge with a constant rate g.t
- Let's explore what happens to the size of a population when it overshoots its carrying capacity. Sometimes, for a brief period of time, populations can exceed their carrying capacity. This can happen, for example, if food becomes a limiting factor; there may be a delay before reproduction declines, causing the population to exceed its carrying capacity briefly. 1. Assume that rmax is 1.0 and the carrying capacity is 2,000. Calculate the population growth rate when N= 2,100 and when N= 2,500 individuals. 2. If rmax is doubled, predict how the population growth rate will change for the two populations given in the previous problem. Then, calculate the population growth rate for the same two cases above, except this time assuming rmax is 2.0. 3. Sometimes after a population briefly exceeds their carrying capacity, there will be a drop in population numbers well below their carrying capacity before it begins increasing again. What is a possible explanation for the drop seen after…Q4.1) Evaluate the role of government in facilitating economic growth and development. There arenumerous classic theories and models of economic growth and development thatgovernments use. Briefly evaluate these theories and models.rowth: Homework Saved years Help Save & Ex Suppose that real GDP per capita in the United States is $53,500. If the long-term growth rate of real GDP per capita is 4.5% per year, how many years will it take for real GDP per capita to reach $107,000? Instructions: Enter your answer as a whole number. Chac